Nintendo stock price tumbles after Direct despite demand for Zelda Switch 2 console

Fans expressed enthusiasm after learning Nintendo Direct showcases would air on consecutive days. However, investors haven’t reacted as positively to the September 8th and 9th broadcasts. The Nintendo stock price in Japan fell 3.99% following the Zelda 40th Anniversary showcase. It then dropped another 4.90% 24 hours later, despite welcoming a healthy lineup of Switch 2 games.

Did the Directs justify the hype?

U.S. trading under the NTDOY ticker was also down 1.21% on September 8th and another 5.76% a day later. The first Nintendo Direct honored a celebrated series and confirmed the Ocarina of Time remake release date. Pre-orders opened for the title, as well as the Zelda Switch 2 console and Pro Controller. Both sold out at retailers, benefiting scalpers.

The less predictable September 9th show highlighted a bevy of third-party projects. Viewers saw trailers promoting major IPs like Final Fantasy, Monster Hunter, and Resident Evil. Still, shareholders already knew about many of these releases before the event.

Traders monitoring the Nintendo stock price often focus more on first-party Switch 2 game announcements. Exclusive software can lure players away from the competing Xbox and PlayStation ecosystems. Leading up to the Nintendo Direct, leaks about 3D Mario and Super Smash Bros. entries surfaced.

The Japanese gaming giant unveiled free Mario Kart World DLC and updates or upgrades for Star Fox, Pokémon Pokopia, and Pikmin 4. Yet new game reveals were limited to Metroid Ravenous and Kirby and the World Beyond.

Searching for a system seller

The Metroid Dread sequel has been well received, and its Special Edition with Samus amiibo has proven popular at storefronts. On the other hand, while Kirby is an established franchise, investors may not view it as a console seller. Many fans have also grown frustrated by the lack of a Super Mario Odyssey sequel.

A more expensive handheld has raised questions about profits heading into 2027. The Switch 2 rose from $449.99 to $499.99 on September 1st in the U.S. following a price increase that hit Japan in May. Speculators considering Nintendo stock have to decide whether the newly announced titles will attract enough adopters.